Abstract:
It was a rough four months for the US as Washington struggled to convince Asian audiences that the “rebalance” is sustainable given renewed attention to the Middle East, even before the Syrian crises. US engagement in Asia was multidimensional with participation at several ministeriallevel meetings, a visit by Vice President Biden, continued pursuit of the Trans-Pacific Partnership, and a show of military capability in Korea. But, it isn't clear North Korea got the message. Kim Jong Un seems to have adopted his father's play book: first create a crisis, make lots of threats, and follow up with a “smile diplomacy” campaign. So far, Washington has stuck to its game plan, insisting on a sign of genuine sincerity before opening a dialogue with Pyongyang. Finally, the US image in the region was damaged by revelations about classified NSA intelligence collection efforts.

Abstract:
Prime Minister Abe focused intently on economic policy and led his Liberal Democratic Party to a resounding victory in the July Upper House election, securing full control of the Diet and a period of political stability that bodes well for his policy agenda. Multilateral gatherings in Asia yielded several opportunities for bilateral and trilateral consultations on security issues, and the economic pillar of the alliance also took shape with Japan's entry into the Trans-Pacific Partnership negotiations and discussions on energy cooperation. Comments on sensitive history issues sparked controversy but did not derail bilateral diplomacy. The nomination of Caroline Kennedy as US ambassador to Japan marks a new chapter in the relationship.

Abstract:
The 12 months under review saw the unfolding of the withdrawal timetable from Afghanistan, the second rotation of US Marines to northern Australia, the first “Full Knowledge and Concurrence” statement on US facilities on Australian soil in six years, and the end of Australia's long-term military deployments in Timor Leste and Solomon Islands. The Gillard government produced a trio of major policy statements built on an understanding that Asia's “extraordinary ascent” means Australia is entering “a truly transformative period in our history.” In the words of the Australia in the Asian Century White Paper: “In managing the intersections of Australia's ties with the United States and China, we will need a clear sense of our national interests, a strong voice in both relationships and effective diplomacy.” Meanwhile, Australian politics experienced a bit of turmoil. The Labor government discarded Australia's first female prime minister in an attempt to appease the voters, but instead the voters discarded the Labor government. So it was that in the national election on Sept. 7, Australia got its third prime minister in the same calendar year. After six years of Labor rule, the LiberalNational Coalition led by Tony Abbott is back in power. Plummeting opinion polls had caused the Labor Parliamentary Caucus to vote out Julia Gillard as leader in June and elect Kevin Rudd as prime minister. Thus, Labor returned to the man it had thrown out of the prime ministership in 2010, afraid he could not win the looming 2010 election. Facing the prospect of another federal election, the Caucus this time dispensed with Gillard and gave Rudd a second chance as prime minister. Rudd, though, carried the weight of Labor's six years in office and the wounds of his bitter three-year leadership wrangle with Gillard, a struggle that had eaten at the government's standing and morale. Abbott's simple message was a Coalition alternative to the disunity, drama, and spectacular hatreds of the Labor years, allowing the Liberal leader to run a campaign that was singularly light on policy commitments. In the end, not being Julia Gillard or Kevin Rudd was enough for an Abbott triumph.

Abstract:
High-level US efforts to convince Burma's military government to open its political system to the democratic opposition and release political prisoners prior to scheduled 2010 elections accelerated this quarter. President Obama, Secretary of State Clinton, and Assistant Secretary of State Campbell all weighed in during meetings in Burma and at the first ASEAN-US summit in Singapore after the annual APEC leaders meeting. The ASEAN states welcomed the first US summit with all 10 members. Secretary General Surin Pitsuwan noted that President Obama's praise for ASEAN's key role in Asian international organizations debunked claims by some that ASEAN is no longer the centerpiece of the region's architecture. Singapore's prime minister insisted that the US continues to be Asia's “indispensable” player despite the rise of China and India. In the Philippines, the Visiting Forces Agreement continues to be a political football in domestic Philippine politics as President Arroyo's political opponents claim that the US military violates the Philippine constitution by engaging in combat – an allegation denied by both the US embassy and the Philippine government. On a tip from the US, Thai authorities detained a cargo aircraft coming from North Korea with a load of sophisticated weapons in violation of a UN Security Council Resolution.

Topic:
Security, Government

Political Geography:
United States, North Korea, Philippines, Southeast Asia

Abstract:
During the last quarter of 2009 relations between the two Koreas maintained the slight improvement seen since late August, when two senior Northern figures visited Seoul and met the hitherto excoriated President Lee Myung-bak. This easing is a relief compared to the first year and a half of Lee's presidency, during which North-South ties went from bad to worse. Yet it is premature to suggest any substantial improvement – much less a return to the engagement of the “Sunshine” decade (1998-2007), which must now be consigned to history. Rather, what we see is mixed signals from Pyongyang, and to some extent also from Seoul. Having got past initial hostilities, the two governments are now testing and sounding each other out. This is not happening in a vacuum, but in the context of two wider imponderables: whether Kim Jong-il will return to nuclear dialogue in any shape or form, plus the opaque and delicate process of installing his third son Kim Jong-eun as his anointed successor. A surprise currency redenomination in early December, rendering most North Koreans' savings worthless and reportedly provoking protests, is a reminder that the North's internal stability cannot be taken for granted – and a blow to those who still aver that the DPRK is at some level trying to change for the better.

Abstract:
A flurry of high-level political and diplomatic contacts marked the quarter. The engagement culminated in the December visit of DPJ Secretary General Ozawa Ichiro to China and his meeting with President Hu Jintao followed by the visit of Vice President Xi Jinping to Japan and his audience with Emperor Akihito. Both Japanese and Chinese political leaders repeatedly made clear their intentions to advance the bilateral relationship. While progress on issues related to joint development of resources in the East China Sea and resolution of the adulterated gyoza case remained noticeably lacking, public opinion polls suggested an upward trend in the way both Japanese and Chinese viewed each other and the bilateral relationship.

Abstract:
Relations between Japan and the two Koreas were relatively uneventful in the final quarter of 2009. The new Hatoyama government quickly began to show more attention to its relations with its East Asian neighbors and hinted at a small change in priorities with respect to North Korea. South Korea and Japan said mostly all the right things, even while substantively it seemed fairly clear that they continued to have very different opinions about territorial and historical disputes. However, no real movement or dramatic changes came about during the quarter, setting the stage for 2010 – the 100th “anniversary” of Japan's annexation of Korea.

Topic:
Government

Political Geography:
Japan, East Asia, South Korea, North Korea, Korea

Abstract:
India-US relations were characterized by a degree of ennui while India-East Asia relations were overshadowed by public tensions between China and India throughout much of the year. The Obama administration, preoccupied by multiple high-stakes domestic and foreign policy priorities, offered up two high-profile visits for New Delhi with Secretary of State Hillary Clinton going to India in July and Prime Minister Manmohan Singh coming to Washington in November as the first head of state visit. But the newly strengthened Congress-led government, which returned to power after the April-May national elections, remained wary of the Obama administration's priorities and approaches toward a range of issues including its Afghanistan-Pakistan (AfPak) strategy, nuclear nonproliferation, and climate change, as it felt some nostalgia for the primacy of place and purpose offered to India by the bygone Bush administration. Meanwhile, in India's ties with East Asia, even though New Delhi made diplomatic forays ranging from Mongolia to Papua New Guinea to the Pacific Islands Forum to Australia while sustaining its traditional relationships with Japan and ASEAN, the tense Beijing-New Delhi interaction over the decades-old border dispute was the focus of attention for most observers.

Abstract:
Last quarter we focused on remarks by US President Barack Obama and Secretary of State Hillary Clinton proclaiming that “America is back in Asia,” an obvious dig at real and perceived neglect of Asia by the previous administration. This quarter, both were forced to postpone planned trips to Asia although, in Secretary Clinton's case, not before giving a major Asia policy address in Honolulu. This quarter also ended the same as last, amid hints that Pyongyang really would, at some not too distant point (but not this past quarter), return to six-party deliberations. On a more positive note, it looks like arms control agreements are on the way back, following the announcement that the US and Russia had finally come to terms on a new strategic arms agreement, to be signed by both presidents in April. Speculation about the “changing balance of power” in Asia also continues as a result of China's economic resilience and apparent newfound confidence, although it still seems premature to announce that the Middle Kingdom is back, given the challenges highlighted at this year's National Peoples' Congress. Political normalcy also appears to be a long way from returning to Bangkok where the “red shirts” have once again taken to the street, prompting the government to declare a state of emergency.

Abstract:
Korea-Japan relations have foundered over territorial and historical disputes for quite some time. Indeed, much of this quarter's report could have been written in 2004, or perhaps even earlier. Yet, we dutifully report the Japanese government's latest claim, the South Korean government's latest protest against that claim, and so on, while also reporting the increasing trade, travel, and institutional relations between the two countries. Which leads to a question: how consequential are these territorial disputes? The mere fact that Japanese and Koreans think they are important enough to alter textbooks and put claims on the Foreign Ministry website makes them consequential. However, do these claims have an impact on the other military, diplomatic, or economic affairs in the region? One could make an argument that despite the sturm und drang over who owns Dokdo/Takeshima, those affairs have not yet led to different policies in other areas, and certainly nobody thinks the territorial disputes might lead to actual war. This is not the place to discuss that question in depth, but it is one of the more intriguing questions that occurs to us as we, yet again, write about the same issues.

Abstract:
China was on the defensive this quarter, reacting to interventions by the US, including a notable statement by Secretary of State Hillary Clinton at the annual ASEAN Regional Forum (ARF) meeting in Hanoi regarding the South China Sea. The ARF meeting also saw a new US commitment, backed by ASEAN, to participate actively in the East Asian Summit, raising the profile of that regional body over China‟s preference for Asian-only regional groups. Further complicating China‟s regional calculus were prominent advances in US relations with Vietnam shown during celebrations of a US-Vietnam anniversary in August that involved exercises with a US aircraft carrier deployed near disputed regions of the South China Sea. Chinese officials and commentary in Chinese media at first countered that the US actions were self-serving and destabilizing. Those attacks meshed with public Chinese attacks on concurrent US military exercises with South Korean forces in reaction to North Korea‟s sinking of a South Korean warship. Later, some Chinese commentary dissented from the harsh public approach, and by the end of the quarter, the criticism of the US and others over the South China Sea disputes and other issues subsided. For the time being at least, it appeared that China will remain focused on publicly stressing trade and reassuring diplomacy in Southeast Asia, while defending its territorial claims and continuing to build military capabilities.

Abstract:
This has been a quiet but constructive quarter in cross-Strait relations. Taipei and Beijing were focused on ratifying and beginning implementation of the Economic Cooperation Framework Agreement (ECFA). With Beijing‟s agreement, Singapore and Taipei announced that they would consider negotiating a WTO-consistent economic cooperation agreement. This important flexibility by Beijing allows President Ma to show that ECFA has opened the door at least slightly to Taiwan‟s involvement in regional trade liberalization. Despite Washington‟s approval of small commercial arms sales, Beijing indicated a willingness to resume military exchanges with Washington. Nevertheless, arms sales to Taiwan remain a threat to US-China relations.

Abstract:
The past quarter in inter-Korean relations might be called the morning after the night before. Tensions over the sunken ROK corvette Cheonan by no means disappeared; the less so since North Korea still denied responsibility, while the South smarted at its failure to convince key powers – China and Russia above all – of Pyongyang‟s culpability. The Cheonan incident remains a crime and an obstacle. Yet hopeful signs are emerging that both sides realize they will have to get past this eventually and that they might as well start now. Among various small initiatives, including flood aid, the quarter ended on a hopeful note with an agreement to hold a fresh round of reunions of separated families in late October.

Abstract:
The quarter started well. The Kan government, emphasizing efforts to strengthen economic ties with China, appointed Niwa Uchiro, former president of the trading giant Itochu Corp., as Japan‟s new ambassador to China. Talks to implement the June 2008 agreement on joint development of the East China Sea began in Tokyo in late July. Prime Minister Kan and all Cabinet members refrained from visiting Yasukuni Shrine on Aug. 15. In early September, Japan began the destruction of chemical weapons left behind in China by the Imperial Army at the end of the war. The quarter, however, ended in controversy. Sparked by the Sept. 7 incident in which a Chinese fishing boat operating near the Senkaku Islands collided with two Japanese Coast Guard ships, relations quickly spiraled downward. The Japanese Coast Guard detained the captain and crew setting off a diplomatic row that led to the Japanese ambassador being called in for a midnight demarche as well as the personal involvement of Premier Wen Jiabao before Japanese prosecutors released the ship's captain on Sept. 24. China's call for compensation and an apology went unanswered as of the end of the quarter.

Abstract:
The two highlights in Japan-Korea relations during this quarter are Prime Minister Kan Naoto‟s apology to South Korea for Japan‟s colonial rule, and the appointment of Kim Jong-un, as vice chairman of the Workers‟ Party Central Military Commission and military general in the Korean People‟s Army. While these developments hold the promise to potentially change the security landscape of Northeast Asia, Prime Minister Kan‟s first full quarter in office reveals that Japan‟s North Korea policy is likely to continue along the lines of previous Japanese administrations, at least for now: an unfavorable attitude coupled with hostility and inaction. Pyongyang‟s attitude toward Tokyo, too, changed little and remained more or less predictable – it denounced Prime Minister Kan for apologizing only to South Korea, criticized Japan for “shamelessly” wanting a permanent seat at the UN Security Council, and demanded compensation for all of Japan‟s past wrongdoings. Japan-South Korea relations appear to be moving closer, although whether Kan‟s apology will truly change anything remains to be seen. Japan keeping a watchful eye on North Korea‟s succession At the quarter‟s end, the Japanese government remained noncommittal but is apparently paying close attention to the North Korea‟s power transition dynamics for signs of whether there is any possible impact on the North‟s stance on either the abduction issue or its nuclear and missile programs. The Japanese media closely followed news about Kim Jong-un‟s appointment as a vice chairman of the Central Military Commission in the Workers‟ Party, which took place a day before the party‟s conference selecting “supreme leadership body.” With no prior military title, little is known about Kim Jong-un, but his new position means that he is responsible for directing North Korea‟s army and for formulating the party‟s military policies. Along with Kim Jong-il‟s sister Kim Kyong-hui‟s promotion to a Central Committee‟s Political Bureau member and her husband Jang Song-taek‟s nomination to the number two position on the National Defense Commission, it appears that a hereditary power transfer may be underway in Pyongyang. The Japanese government made no immediate official comment, but Prime Minister Kan said on Sept. 28 that Japan will “carefully monitor the situation inside North Korea.”

Topic:
Security, Government

Political Geography:
Japan, South Korea, North Korea, Tokyo, Korea, Pyongyang

Abstract:
In 2010, Australia saw a first-term-elected prime minister deposed by his own party and then a federal election that produced a hung Parliament. The Labor Parliamentary caucus removal of Prime Minister Kevin Rudd on June 24 ushered in Australia‟s first female prime minister, Julia Gillard, who waited only three weeks after replacing Rudd before calling a national election, seeking her own mandate from the voters. Instead, the election on Aug. 21 returned the first hung Parliament since World War II. The new Labor government will live on the permanent brink of defeat – fearing an MP‟s heart attack, a defection, a by-election. Gillard has won the right to negotiate for her policy preferences, not to impose them. Running a minority government will demand an almost unremitting domestic focus from Gillard. She has promised a more consultative, inclusive style of politics. The Australian Financial Review summed up the difference between the two leaders with this quote from a senior ministerial adviser: “Kevin governed from a two-man tent. Julia will need a marquee.” Style changes between the Rudd and Gillard governments will be marked. But policy continuity will often be the norm, especially in foreign policy.

Abstract:
Oct. 1, 2008: Japan International Cooperation Agency (JICA) becomes the world's largest bilateral development agency. Oct. 3, 2008: The Bank of Japan injects 800 billion yen ($7.6 billion) into the international financial system to prevent a global credit crunch from increasing interest rates. Oct. 3, 2008: Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill meets Saiki Akitaka, director general for Asian and Oceanian Affairs, Ministry of Foreign Affairs, in Seoul to discuss Hill's visit to Pyongyang for discussions concerning a verification protocol for North Korean denuclearization under the Six-Party Talks.

Abstract:
The U.S. and China held the 5th Strategic Economic Dialogue and the 6th Senior Dialogue this quarter. The global financial crisis was a focal point of discussion in both dialogues, as well as in the meeting between Presidents Bush and Hu Jintao on the sidelines of APEC in Lima, Peru. Beijing responded to the announced U.S. sale of $6.5 billion in arms to Taiwan by suspending bilateral military exchanges between the U.S. and China and talks on nonproliferation. China's internal debate about the international structure of power and the status of the U.S. was revived as the two prepared to celebrate the 30th anniversary of the establishment of diplomatic ties.

Abstract:
Beijing and Taipei continued to work cooperatively through various dialogue channels to improve cross-Strait relations. The focus this quarter was on the first ever visit by a “designated representative” of the Chinese government to Taiwan – the visit of ARATS Chairman Chen Yunlin in November, when four agreements were signed. This process is gradually establishing a degree of trust in this long-troubled relationship. However, a vocal opposition minority in Taiwan disrupted the Chen visit and forced President Ma Ying-jeou to make adjustments. Despite the progress, there is still no evidence that Beijing has taken any steps to reduce its military threat directed at Taiwan. President Hu's new six-point statement and Taipei's initial reaction to it highlight the continuing gap between their positions. The global economic crisis is confronting the relationship with new challenges, the scope of which is not yet clear. Internationally, Taiwan's desire for participation in the WHO will be a test of this evolving relationship next spring.

Abstract:
The final three months of 2008 saw relations between the two Koreas continue to worsen, as they had since South Korean voters in December 2007 elected the conservative Lee Myung-bak as their next president, ending a decade of rule by liberals. Official ties remained frozen as Pyongyang media continued to heap childish insults on Lee. Upping the ante from words to deeds, but also shooting itself in the foot, from December the North placed restrictions on cross-border traffic and expelled most Southerners from the joint Kaesong Industrial Complex (KIC), just north of the Demilitarized Zone (DMZ). But the end of the year brought a possible way forward, with hints from both sides that they are considering a deal where the South would pay for the release of abductees and prisoners of war held by the North. It remains to be seen whether this will fly or how soon the two Koreas can tone down the enmity stoked over the past year. Meanwhile, nongovernmental interaction continues, albeit on a far smaller scale than during the former “Sunshine” policy.

Abstract:
In early December, the Japanese Foreign Ministry released its annual survey of public opinion on Japan's international relations, which revealed that over 70 percent of the public considered relations with China to be in poor shape. The survey likewise revealed a record high, 66.6 percent of the Japanese public, as feeling no affinity toward China. Meanwhile, the Ministry of Defense reported increasing PLA naval activities in the waters around Japan, including the incursion of research ships into Japanese territorial waters in the Senkaku Islands chain. There were also reports that China would begin the construction of two aircraft carriers in 2009. Japanese and Chinese leaders met in Beijing in October and in Japan in December, but beyond commitments to best efforts, failed to make any demonstrable progress on food safety and sovereignty issues.

Abstract:
In contrast to the hectic third quarter of the Beijing Olympics and South Ossetia, the last quarter of 2008 was calmer for Russia and China. Their bilateral relations, nonetheless, seemed to become more substantive. The 13th annual Prime Ministerial Meeting in Moscow in late October and the 13th session of the Russian-Chinese Intergovernmental Commission on Military-Technical Cooperation in Moscow in early December provided some fresh impetus for the impasse in two important areas of bilateral relations: the long-awaited oil pipeline to China and military relations. Separately, the quarter also witnessed the final, albeit low-key, ceremony for settling the last territorial issue when Russia officially transferred to China control of one and a half islands of the disputed territory near Khabarovsk. However, the world around Russia and China was in turmoil not only because of the financial tsunami that was leaving no nation behind, but also because of regional crises between India and Pakistan as well as Israel and Palestine, and the stagnation in the Korea denuclearization process.

Abstract:
Secretary of State Hillary Clinton's choice of Japan, Indonesia, South Korea, and China for her first official trip overseas helped shine a spotlight on Asia as a high priority region this quarter, as did North Korean Dear Leader Kim Jong-il's announcement that he intended to conduct a satellite launch in early April. The drama surrounding the anticipated launch provided an unfortunate back drop for otherwise very positive pronouncements about intended Obama administration policies in East Asia, even if the quarter closed with only a handful of those eventually to be tasked with implementing these policies at their desks. ASEAN leaders finally held their postponed summit and celebrated the entry into force of their much-maligned Charter. Meanwhile, Australian Prime Minister Kevin Rudd visited Washington to underscore that the U.S. and Australia are still “mates,” even as his reluctance to send more combat forces to Afghanistan foreshadowed the difficulty President Obama faces in getting allies to sign up for his “surge” there. Finally, economic forecasts kept being adjusted downward as Asian leaders prepared for the G20 summit in London in hopes that this would bring a turnaround.

Abstract:
A new calendar year did little to change the tenor of Japanese domestic politics as the public became increasingly frustrated with parliamentary gridlock and the leadership of Prime Minister Aso Taro, whose approval rating plummeted amid a deepening recession. Opposition leader Ozawa Ichiro continued pressure tactics against the government and became the favorite to succeed Aso until the arrest of a close aide damaged his reputation and stunted momentum for a snap election. Aso demonstrated the art of political survival, touting the urgency of economic stimulus over a poll he could easily lose and which need not take place until the fall. In an effort to prevent political turmoil from weakening Japan's global leadership role, the government dispatched two Maritime Self-Defense Force (MSDF) destroyers to participate in antipiracy operations in the Gulf of Aden.

Abstract:
The quarter ended with the question of whether President Obama's first late-night crisis phone call – the metric for leadership bandied about during the campaign – would be over a ballistic missile test by North Korea. The suspenseful end to the quarter contrasted with its quiet start where the focus of U.S.-ROK bilateral relations was on initial contacts between the Lee and Obama administration teams and policy coordination over the global financial crisis, while the North Korea missile launch issue slowly but steadily moved from a simmer to a slow boil. However events unfold, the launch itself gives the new administration its first taste of North Korean bad behavior and confronts it with the problem of finding the right balance between under- and over-reaction that is needed to move denuclearization negotiations forward.

Abstract:
The bilateral dialogue in the first quarter of the year was cordial, if somewhat distant. The administration of President Barack Obama sent clear and positive signals to the Kremlin. At times President Dmitry Medvedev and Prime Minister Vladimir Putin reciprocated with positive language; at times Moscow's negative rhetoric reappeared. Clearly the Russian leadership has been making a cautious assessment of the new U.S. leader. Optimism was again evident at the London meeting between Obama and Medvedev on the eve of the G20 summit on global economic issues. In London, the two leaders pledged cooperation on a variety of issues, centering on arms control. There has been nothing positive in the bilateral relationship to report since last April when then-President George W. Bush visited then-President Putin at Sochi. Since that time, the relationship has plunged to depths unseen since the Cold War. Although many observers wish to see progress (and have come to forecast it), there is clearly much work to be done to repair the rift that has developed over the past six years.

Abstract:
Secretary of State Hillary Clinton's visit to Indonesia, part of her initial overseas journey to Asia, was enthusiastically received in the world's most populous Muslim country. The secretary praised Indonesia's thriving democracy as evidence of the compatibility of Islam and political pluralism. Noting Southeast Asia's importance to the U.S., Clinton announced that the State Department would begin consideration of a process to sign ASEAN's Treaty of Amity and Cooperation, a prerequisite for membership in the East Asia Summit. She also acknowledged that Washington's harsh sanctions against Burma's military junta had not changed that regime's draconian rule but also pointed out that ASEAN's engagement strategy was equally impotent. Nevertheless, she stated that the U.S. would consult with ASEAN in the process of reviewing its Burma policy. Meanwhile, ASEAN held its 14th summit in Thailand at the end of February. While the global economic crisis dominated the agenda, the future of a human rights commission mandated by ASEAN's new Charter proved the most contentious, with the more authoritarian ASEAN members insisting that noninterference in domestic affairs should remain the underlying principle of any human rights body.

Abstract:
Southeast Asian and broader international attention focused in March on the confrontation between five Chinese government ships and the U.S. surveyor ship USNS Impeccable in the South China Sea near Hainan Island. U.S. and Chinese protests and related media commentary highlighted for Southeast Asian audiences a pattern of U.S. surveillance to learn more about China's growing military presence and activities in the area, and a pattern of China's unwillingness to tolerate such actions in areas where it claims rights that are disputed by the U.S. and other naval powers. The protests and commentary provided a vivid backdrop for China's continued efforts to claim and defend territory in the South China Sea that is also claimed by Southeast Asian nations. Meanwhile, there was little good news on the economic front as China's international trade and economic interchange with Southeast Asia continued to fall rapidly. Chinese diplomatic and political attention to the region remained low during the quarter.

Abstract:
Beijing and Taipei have been making preparations for the third round of ARATS-SEF talks to be held in May or June at which time additional agreements on finance, flights, and crime are expected. The global recession has precipitated a dramatic decline in cross-Strait trade and that, in turn, has contributed to accelerated plans to negotiate a comprehensive cross-Strait economic agreement. However, the planning for such an agreement has produced a storm of opposition protest in Taiwan, which represents the most serious challenge yet to President Ma's cross-Strait policies. Officials on both sides are speaking optimistically about finding a formula under which Taipei could be an observer at the World Health Assembly (WHA) in May. Although defense reports from both sides acknowledge reduced tensions, there is as yet no sign that Beijing will reduce the military threat directed at Taiwan.

Abstract:
Looking back, it was a hostage to fortune to title our last quarterly review: “Things can only get better?” Even with that equivocating final question mark, this was too optimistic a take on relations between the two Koreas – which, as it turned out, not only failed to improve but deteriorated further in the first months of 2009. Nor was that an isolated trend. This was a quarter when a single event – or more exactly, the expectation of an event – dominated the Korean Peninsula and Northeast Asia more widely. Suspected since January, announced in February and awaited throughout March, despite all efforts to dissuade it North Korea's long-anticipated Taepodong launched on April 5. This too evoked a broader context, and a seeming shift in Pyongyang. Even by the DPRK's unfathomable logic, firing a big rocket – satellite or no – seemed a rude and perverse way to greet a new U.S. president avowedly committed to engagement with Washington's foes. Yet, no fewer than four separate senior private U.S. delegations, visiting Pyongyang in unusually swift succession during the past quarter, heard the same uncompromising message. Even veteran visitors who fancied they had good contacts found the usual access denied and their hosts tough-minded: apparently just not interested in an opportunity for a fresh start offered by a radically different incumbent of the White House.

Topic:
International Relations, Development, Government

Political Geography:
United States, South Korea, North Korea, Pyongyang